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Environmental Promotion Strategies
Due to the consumer, celebrity and government appetite for protecting the “environment” environmentally friendly practices are used as promotional tools. For example the award of ISO 14001 (which certifies that an organisation has certain environmental standards, as certified by an independent external auditing organisation) is often quoted in marketing literature.
Product packaging that can be recycled will have a message on the packaging clearly stating the recycling properties for the packaging. Similarly organic products will be labelled, not only on the packaging but also around the shelving displaying the organic produce.
Some organisations have sought to reduce costs through the promotion of environmentally friendly strategies. The use of carrier bags has changed dramatically in the UK over the last 2-3 years. Retailers actively promote the benefit of reusable bags as they have many benefits
• Lower costs for the retailer
• Consumers “feel good” as they believe that the use of a reusable bag is helping the environment
• Fewer carrier bags go to landfill
Another example is hotels offering guests the opportunity to engage in fewer linen and towel changes. Such strategy is environmentally friendly as it reduces the use of detergents and energy but it also reduces costs for the hotel and improves corporate image.
Some organisations providing products and services which may harm the environment have added “off setting” methods to their portfolios and marketing literature. The idea behind “off setting” is that the consumer is offered the opportunity to indirectly engage in an activity (such as tree planting) that benefits the environment and therefore balances/evens out the damage they caused for example through flying. Such schemes attempt to ease the consumer’s conscience and retain a positive image for the organisation providing the environmentally unfriendly product or service.
Environmental Pricing Strategies
Throughout this article we have discussed how environmentally friendly strategies can either increase or decrease organisational costs. The ideal marketing mix is a reduction in costs and/or an increased in costs which is exceeded by an increase in profits.
Pricing must reflect the demand for the product an incorrectly priced product will reduce demand; this is now further complicated by the impact environmental issues have on pricing. If an organisation is paying more for raw materials because the supplier is “environmentally friendly” it may decide to “pass on” this price increase to the consumer, the amount the ideal amount will be dictated by the target consumer.
On the other hand companies cutting costs and increasing profits at the expense of the environment may be risking negative publicity, fines, sanctions or may simply lose out to organisations actively promoting their environmentally friendly practices even if such competitors offer more expensive products and services.
Summary
The environmental marketing mix is becoming extremely important in today’s business world. Firms will have to carefully manage this mix if they are to successfully operate in a world which is becoming increasingly aware of climatic changes.
Further reading:
Principles of Marketing by Philip Kotler
Principles of Marketing by Frances Brassington
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